The problem of non-technical power loss due to theft of electricity experienced in developing countries is of great concern. This is done mainly by tapping of the overhead AC reticulation networks and bypassing of metering units. Applying DC reticulation at higher voltage levels using the existing AC reticulation networks is one approach to solving this problem. This paper aims at investigating the development of a cost-effective 3.5 kVA flying capacitor multilevel inverter (FCMLI) for DC reticulation. The development of a low-cost bootstrap power supply for multilevel inverter gate drive circuits is also discussed.